Interprocess communication facilitating sellside marketmaking

ABSTRACT

An electronic exchange platform configured to: receive respective list of approved Buyside participants for each of a plurality of marketmaking orders; receive a respective marketmaking order for a side of trades on the financial instrument from each of the plurality of Sellside participants; peg a price for the received marketmaking orders to a price relative to and multiple ticks behind a best price on the side in an order book; present market information to Buyside participants identifying marketmaking orders for which the Buyside participants are approved; receive a contra order from a Buyside participant that is approved to trade with a subset of the plurality of marketmaking orders, in which the contra order identifies preferred Sellside participants; distribute the contra order; and determine new best bid and offer in response to the distribution; and adjust remaining marketmaking offers to retain peg in response to determining new best bid or offer.

RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.15/622,977 filed on Jun. 14, 2017 which claims priority to U.S.provisional application 62/350,141 filed Jun. 14, 2016, U.S. provisionalapplication 62/375,231 filed Aug. 15, 2016 and U.S. provisionalapplication 62/376,665 filed Aug. 18, 2016. All of these applicationsare hereby incorporated herein by reference in their entireties.

FIELD

Some embodiments relate to Sellside market making in an all-to-allmarketplace to favored Buyside customers as a private LiquidityProvision.

BACKGROUND

Parties trade in financial instruments such as stocks and bonds.

BRIEF DESCRIPTION OF THE FIGURES

FIG. 1 shows an example system according to some embodiments.

FIG. 2 shows an example method according to some embodiments.

FIGS. 3 and 4 show example interfaces that may be used in someembodiments.

SUMMARY

The following should be understood as embodiments and not claims.

DETAILED DESCRIPTION First Example Embodiments

Various examples of trading systems and methods that may be used in someembodiments are described in U.S. patent application Ser. No. 14/059,000to Sweeting, et al. and U.S. patent application Ser. No. 12/938,189 toSweeting, et al. both of which are hereby incorporated by reference intheir entirety.

Some embodiments may provide for Liquidity Provider (Sellside Banksand/or High frequency Trading/Proprietary Trading Firm Market Makers insome markets, collectively referred to here as “Sellside”) orders forBuyside (e.g. Traditional Fund Managers, Hedge Fund Managers, CommodityTrading Advisors) liquidity. Such a liquidity provision order may beoutside of a best bid/offer available through an all-to-all marketplacesuch as a Central Limit Order Book (CLOB, or just “order book”).Nonetheless, such a liquidity provision order may be pegged to the bestbid/offer. For example, a marketplace may operate using decimal pricingand a liquidity provision order may be set at two price ticks away (bidslower, offers higher in traditional percentage pricing formats or offerslower, bids higher in yield formats) from a best bid/offer. Otherimplementations may have other arrangements, such as non-decimal pricingand/or one, four, ten and so on ticks (or minimum price movements) awayfrom the best price showing in a CLOB. Other implementations may not pegthe liquidity provision orders to the best bid/offer at all. A platformmay offer a variety of system configurations per instrument section,such as (i) [10] $/m back for $[100]m, (ii) [20] $/m back for $[200]m,and so on, with the numbers in [ ] configurable on a daily or hourlybasis, or linked to some external factor such as implied or realisedvolatility.

A marketplace may be configured to show availability to trade to a listof trader logins and API connections and to these traders also via OrderManagement Systems and Execution Management Systems (OMS/EMS) of certainBuyside entities configured to see such liquidity provision.

In one example, a passive liquidity provision order to make a market maybe 10 Dollars per million in decimals ($/m) back from the top of theorder book (e.g., central limit order book or CLOB) priced in decimalsof a percentage point. In some embodiments, for example Mortgage backedbonds usually priced in fractions of a 32^(nd) of a percentage point,when a top of book CLOB price approaches a nearest ¼ of a 32^(nd) belowfor bids or above for offers, a marketplace may limit a price for aliquidity provision order showing in decimals behind the top of bookCLOB price but still inside a traditional fraction of a 32^(nd) pricedCLOB showing on other venues. A passive liquidity provision order pricemay be limited to a respective increment of a 32^(nd) as the decimalsprice approaches the fraction of a. 32^(nd) level, with the prescribed10$/m spread back (from the top of the book CLOB price) becomingtemporarily compacted as a result. Trading Risk of this LiquidityProvision order price compaction may rise as the 32^(nd) increment isapproached by the all-to-all CLOB market price. Limiting size profferedby a Market Maker to favoured Buyside Customers at this LiquidityProvision pricing accordingly may limit such risk. A market maker maycompare market data (e.g., available through Fenics) with other venuesto ascertain when a liquidity provision order should remain current(with or without such systemic size limitation) or be cancelled becauseof market price compaction risks. It should be recognized thatincrements are given as non-limiting examples and other embodiments mayinclude other increments (e.g., a ½ of a 32^(nd) for some MortgageBacked bonds or ⅛^(th) of a 32^(nd) for some off-the-run Treasury bondsup to 2Y maturities).

In some embodiments, users that submit liquidity provision orders asdescribed herein may be limited from discovering sizes of other users'liquidity provision orders. Instead, in some embodiments, liquidityprovision orders may be shown only to Buyside entities configured by thesystem to see them, with agreement by both the Market Maker placing thepegged Liquidity Provision order and also the Buyside customer viewingthem. Even such Buyside entities may be further limited intraday to onlysee those liquidity provision orders that market makers identify to themarketplace as ones they wish to show liquidity to at any one point intime. In some embodiments, additions to the list may be made via aproduction support team of the marketplace or a GUI based “request forcoverage” message as is known in the art.

In some embodiments, liquidity provision orders may be considered,matched, presented and/or used cumulative with the best bid/offer sizes(e.g., the best price). A user interface presenting liquidity provisionorder information may be presented to Buyside entities for whom theorders are available. Information about such orders may be presentedalongside the regular order book for Buyside users for whom the ordersare available. In some embodiments, such information may be available ina mouse over popup interface for such Buyside users for whom the ordersare available to show the Buyside trader the full liquidity available tothem behind the best bid and offer showing in the order book.

Liquidity provision order sizes may also be presented in a new orderticket window user interface. An aggressive liquidity provision ordertype may be available in some embodiments. Both order book best priceand liquidity provision order sizes may be displayed separately (e.g.,order book bid/offer above/below liquidity orders that are behind thoseorders in price terms) in a user interface. In some embodiments, inresponse to aggressor size being entered into either buy or sellorientated boxes of a user interface, a liquidity provision size may beaggregated with the best bid/offer size from the order book to presentan average price for that size in the window. A sell down to/buy upoption may be available in some embodiments.

In some embodiments, a passive liquidity provision order may be acceptedvia a FIX and/or Itch/Ouch API. In some embodiments, market makerpassive liquidity provision orders may be available to be providedthrough a Sellside GUI. Other embodiments may not make such ordersavailable to be provided through a Sellside GUI. In both theseembodiments of a Sellside GUI and API, the viewing of other SellsideLiquidity Provision orders may be restricted, or may be made availablefor all to see.

In some embodiments, a Buyside entity's Traders may access Sellside'spassive liquidity provision orders through an aggressive liquidityprovision order. In some embodiments, such an order type may beunavailable to a Buyside entity if the Buyside entity has an opposingorder in an order stack to what his true intention is with the liquidityprovision orders. For example, a Buyside entity may be unable tohit/sell a 100 m liquidity provision bid order after bidding up in smallsizes to raise the Liquidity provision orders showing a set amount ofprice increments behind the best CLOB bid.

In some embodiments, a marketplace may determine when to present anaggressive liquidity provision order to match with an available passiveliquidity provision order. The marketplace may use a variety of factorsin making such a determination. An aggressive liquidity provision ordermay be presented in response to the order book best price being tradedto its full size by the Trader using an aggressive liquidity provisionorder type. A remaining size of an aggressive liquidity provision order(from a Buy side Trader or a Trader configured to use such) may beavailable to trade against one or more passive liquidity provisionorders (from Sellside traders or Traders configured to use such) behindthe best price.

In some embodiments, each first best price order in the order book witha matching e.g., from a same order submitter) passive liquidityprovision order behind the best price may be eligible for preferredexecution against the aggressive liquidity provision order at thepassive liquidity order provision price level through the matching ofthe passive liquidity provision orders. Size remaining after suchpreferred execution may be distributed among other orders. A technicaleffect of this adjustable matching preference is to encourage Sellsidetraders to place CLOB orders at the best price, thus often closing inthe bid/offer spread at the CLOB top of book price levels.

In some embodiments, existence of an order at the best price may makeeligible matching of passive liquidity provision orders behind the bestprice. In some embodiments, matching behind the best price with theliquidity provision orders that have corresponding best priced ordersmay happen prior to matching with orders at the best price.

In some embodiments, a Buyside aggressor may assign a “promo code” orpreferred status to a market maker. If that market maker has a passiveliquidity provision order present, that order may be given preference insize distribution. This may be the case even if the market maker doesnot have an order at the best order book price. In some embodiments, themarket maker need not have a passive order present to engage in tradingwith the aggressor at their passive liquidity provision order pricelevel. The market maker may be identified by a promo code used with theaggressive liquidity provision order and their passive liquidityprovision order be traded whole or in part as a result. In someembodiments, the market maker may be identified by a promo code usedwith the aggressive liquidity provision order and even when the marketmaker has no passive liquidity provision order present to match against,they would be invited via electronic message to submit a counter orderin response to receive preferential matching. In some embodiments, apromo code may identify multiple market makers. The market markets maybe identified in order of preference, to be treated equally, and so on.For example a promo code that identifies four market makers A B C and Dmay first provide size to A then B and so on. In another implementationsize may pro rata fill or fill according to some other algorithm asdescribed herein or elsewhere with A B C and D.

In some embodiments, size may be divided according to some rankingcoefficient. If a market maker is high enough ranking, they may atcertain times receive preferential matching for part or all of anaggressive liquidity provision order. In other embodiments, size may bedivided evenly, pro rate, and/or according to some other preference suchas time and/or size order preference.

In some embodiments, size may be distributed according to a percentageof size traded at the best order book price. In some embodiments, thatpercentage may be divided by a daily, weekly, monthly or annuallycalculated ranking coefficient from market participation. Other methodsof determining coefficients, if used at all, may be used. In someimplementations, a top ranked market maker may be given preference overother market makers. In some implementations, size may be distributedamong market makers in accordance with the determined coefficients.

In some embodiments, if there is still size left after such algorithmicsize allocation, then size may be matched with passive liquidityprovision orders that do not have matching best orders in an order book.Such matching may take place in a pro rata fashion in some embodiments.Such matching may be take place with a preference given to participantswith a better order book price in some embodiments.

In some embodiments, a promo code or preferred status may be availablethrough a GUI and/or FIX API. Such a promo code may indicate that amarketplace should preference a particular market maker's passiveliquidity provision orders even if a standard size distributionalgorithm would not match with that market maker.

In some embodiments the promo code may default to or otherwise be emptyso that the algorithm described elsewhere may be used. In someembodiments a trader or system specialist may change a default so thatthe default is not blank but rather some other promo code. In someembodiments, a trader may use a GUI to change a default to some otherpromo code. Where a market maker identified by a promo code has apassive liquidity provision order pending, the market maker wouldreceive size as described elsewhere.

In some embodiments, a system may make a determination whether to useliquidity provision orders at all to fill an order. For example, adetermination may be made that there is sufficient liquidity in ordersoutside of the liquidity provision order to fill an aggressor order at abetter price than with the liquidity provision orders. In such asituation, an aggressor order may be filled at the better price for theaggressor without use of the liquidity provision orders. This situationmay arise for example if there are large amounts of liquidity at a bestbid or offer.

In some embodiments, trade confirmations may aggregate to reduce ticketnumbers. For example, when using an aggressive liquidity provisionorder, a single averaged execution at a slightly better price (for theaggressive liquidity provision order user) than the liquidity provisionprice level may be presented rather than multiple tickets at differentprice levels.

In some embodiments, elements of trading activity may remain anonymousand/or unpublished. Such anonymity and/or unpublished status may lastfor some limited time. For example, in some embodiments, liquidityprovision trade sizes may not be immediately published but may be addedto total size traded at the end of the trading day. In some embodiments,liquidity provision trades may be excluded from end of day high and lowvalue calculations. In some embodiments, liquidity provision trades maybe labelled as such in post trade STP messaging and for trade orregulatory reporting purposes.

In some embodiments, a daily randomized customer identification numbermay be attributed to every Buyside entity. This number may be added topost-trade STP messages for the contra-Sellside market maker. A Sellside market maker may use such information to request removal of anabusing Buyside entity from their enabled pool. Abuse may raise an alertto the production support team of the marketplace for investigation.Other suspicious occurrences of market data manipulation beforeliquidity provision orders get hit or lifted may also raise an alert.

In some embodiments, a marketplace may adjust liquidity provision ordersas a best bid: offer changes. Such order may be adjusted en mass as themarket moves. In some embodiments, a single bid or offer may move thebest price of the market and in response many liquidity provision ordermay be adjusted. In some embodiments, a marketplace and/or order mayinclude a size threshold and/or decimal price increment that must bereached before a liquidity provision order is adjusted.

While examples are discussed of a liquidity provision order that doesnot have a matching order at the best price being used to provide size,it should be recognized that other implementations may not access suchorders.

In some embodiments, liquidity provision order size presented may begoverned by a bilateral permission matrix so that market makers can setup preferred counterparties.

Some embodiments of a marketplace may interact with an Order ManagementSystem (OMS) such as Fidessa or Aladdin (as is well used in themarketplace). A GUI of such a system may tag size of liquidity provisionorders and order book orders differently. Accordingly, the orders may bedifferentiated between regular GLOB size and liquidity provision ordersize that can only reached by trading the best GLOB price substantiallysimultaneously.

FIG. 3 shows an example interface (as seen by a Buyside user) showing afirst row having an order at an order book best price and a liquidityprovision order at a worse price (to the user). Size available to tradeat the liquidity provision price may be significantly higher than at theorder book price in some embodiments. This example interface showsexamples of:

-   -   (i) the promo code as described above at element 301. A user may        input promo code information into an interface element to        influence order fulfillment.    -   (ii) the top line best of order book (CLOB price 99.9700 bid,        99.9760 offered) at element 303 and 305. The interface may        adjust as CLOB changes. The interface shows an “x” to cancel the        users order through he interface because the user has a pending        offer at the best CLOB price.    -   (iii) the second line of passive liquidity provision bid order        size available at element 307    -   (iv) the non-availability of the passive liquidity provision        order offers at 99.9765625 (due to the existence of the Buyside        trader's CLOB offer showing at 99.9760) at element 309. This may        be indicated by a lightening of an interface element, a        colouring of an interface element, and/or in any desired manner        to indicate to a user that an order is unavailable. As orders        are entered or the CLOB changes, the availability of orders may        change and the interface may adjust to indicate such changes.    -   (v) the aggressive liquidity provision offer order of size 242        at price 99.9690 ready to be sent to the system for matching at        element 311. A user may click the interface on the price show on        the interface (99.9690) to submit an order at that price. A user        may enter a size such as the 242 shown in the interface to trade        at that size.    -   (vi) the price compaction of passive liquidity provision offer        orders that would be offered at 99.9770 but are instead        compacted to the decimal equivalent (99.9765625) of the nearest        ¼ of a 32^(nd) (99 and 31¼/32^(nds)) at element 309.

Another example interface that may be used in some embodiments is shownin FIG. 4

This interface has many similarities to the prior interface. It may beused to view information about liquidity and/or submit orders. Thisinterface does not include a promo code portion (though it might inother instances where a promo code is being offered). Further, in thisexample, pricing levels are shown as differentials from a razors edge orbest bid/best offer price. For example, there is 250 volume pending at99.9690 as indicated at 401, 500 volume pending at 99.9680 and 1050volume pending at 99.9670 to buy where the best bid is 99.9700. In thisinterface, these orders are shown as 250 at −10 from the best bid, 500at −20 from the best bid and 1050 at −30 from the best bid. These ordersmay float in actual price as the best bid moves but may stay at therelative price distance. So, showing the differential and the best bidshows the information from which the actual price may be derived.Similarly, a +10, +20, +30, etc. is shown on the offer side. The exampledoes not show a price compaction being shown in the interface. In someinstances, a price compaction may not occur. In some instances, a pricecompaction may occur even if it is not shown in the interface. In otherembodiments, a price compaction may occur and may be shown in theinterface. For example, instead of showing +10 corresponding to a99.9770 price, the interface may show +5.625 corresponding to a99.9765625 price.

In some embodiments compaction may be optional and/or variable. Forexample, rather than compacting to a set increment (e.g., 1/32),compaction may move to better than that increment so that price of theliquidity provision order is better than the 1/32 increment. The degreeto which it is better may vary. As illustrated above, an increment maybe at 99.9765625, and an order at 99.9770 may compact to the incrementin some embodiments. In other embodiments, the order may compact pastthe increment to 99.9766, for example. An amount of compaction may beconfigurable. Whether compaction is applied or not may be configurable.Such configurability may be on a participant level, an order level,and/or an instrument level. For example, a Sellside participant may useno compaction for one instrument, increment level compaction on anotherinstrument, and better than increment level compaction on yet anotherinstrument (e.g., by submitting compaction information to amarketplace). In some embodiments, the participant may determine howmuch better than the increment the compaction will be (e.g., bysubmitting compaction information to a marketplace).

In some embodiments, parties (e.g., Sellside participants that submitpassive liquidity provision orders and Buyside participants that submitaggressive orders) may determine which counterparties they are willingto trade with. This may be a requirement of a market to enable tradingon the market. For example, participants may be required to submit atleast three counterparties that they are willing to trade with. Themarketplace may retain the enabled trading party information as privateand secure. For example, a marketplace may store the information in anencrypted matrix that matches each party with approved counterparties.The approved counter party matrix may be access to determine whichorders are accessible by each party. In some implementations, suchapproval may apply to all trading. In other implementations, suchapproval may apply to liquidity provision trading and not CLOB trading.Approval may take place at an entity level, an order level, aninstrument level and so on.

In some embodiments, a user interface may present liquidity provisionorder information to a party. To determine which information should bepresented through the user interface, a marketplace may access anapproved counterparty matrix to determine which counterparties havebilateral approval for the party. For each counter party for which thematrix indicates bilateral approval, information about liquidityprovision order may be determined and used to populate the interface.Accordingly, the party may be shown information about liquidityprovision orders for counterparties that have bilateral approval.

In some embodiments, a Buyside participants may be given an option ofrequesting liquidity provision orders from a specific Sellsideparticipant. For example, a Buyside participant may desire to seeliquidity provision orders from JP Morgan. The marketplace, maydetermine such orders and present them to the Buyside participant (e.g.,if the parties are bilaterally approved). This feature may remove anelement of anonymity for the Sellside participant. However, this featuremay enable the Buyside participants to provide trades more easily tothose participants with which they have favorable relationships. Otherembodiments may not have such a feature to protect anonymity.

In some embodiments, Sellside participants can provide passive liquidityprovision orders but may not be able to view those order from otherparticipants. In some embodiments, Sellside participants can enter CLOBorder and passive liquidity provision orders but not aggressiveliquidity provision orders. In some embodiments, Buyside participantscan enter CLOB orders and aggressive liquidity provision orders but notpassive liquidity provision orders.

It should be recognized that the examples given are non-limiting. Otherembodiments may include additional, fewer, or different elements.Embodiments may be combined in any arrangement with one another. Someexamples may be used for FX trading, treasury trading, mortgage backedbonds, any OTC trading and/or other trading desired.

Second Example Embodiments

Some embodiments provide a platform for trading financial instrumentssuch as mortgage backed bonds. The platform may enable any number ofSellside participants to enter market making orders pegged to a best bidor best offer price for a financial instrument. The Sellside marketmaking orders may be available to Sellside approved Buysideparticipants. The platform may distribute size of contra orders amongmarket making orders based on one or more factors discussed herein. Theplatform may adjust market making orders as the market moves. Theplatform may provide an interface through which market making ordersavailable to a Buyside participant are discernible to that participant.The platform may denominate sales in a decimal manner and provide pricecompaction protection as that price approaches a fractional valueavailable through the marketplace and/or other venues.

FIG. 1 illustrates an example platform that may be used in someembodiments. As indicated the platform may include a marketplace 101, afirst Buyside participant 103, a second Buyside participant 15, a firstSellside participant 107 and a second Sellside participant 109.

Marketplace 101 may include a computing device configured to enabletrading of financial instruments. The marketplace may accept buy andsell orders for one or more financial instruments The computing devicemay be configure manage, track, match, and clear orders. The computingdevice may include a matching engine configured for high speed, lowlatency matching of orders.

Buyside participants 103 and 105 may include for example hedge funds orother participants that may make up the Buyside of a market. Buysideparticipants may engage in buying and selling of financial instrumentsthrough the marketplace. Buy side participants may include computingdevices configured to enable trading through the marketplace. Suchcomputing system may include order management systems configured totrack trading intentions in confidence for a Buyside entity.

Sellside participants 107 and 109 may include, for example, highfrequency trading entities or other participants that make up theSellside of a market. Sellside participants may engage in buying andselling of financial instruments through the marketplace. Sellsideparticipants may include computing devices configured to enable tradingthrough the marketplace.

A marketplace may provide an API through which Buyside and Sellsideparticipants may communicate orders. For example FIX messaging through acommunication network such as the internet may be used to submit ordersto a marketplace. The marketplace may receive information through theAPI and interpret the information as an order.

The marketplace may enable Sellside participants to act as market makersfor a financial instrument. A Sellside participant may act as a marketmaker by submitting a market making order to the marketplace. In someimplementations, the market making order may be one side (e.g., a sellorder or a buy order). In other implementations, a two sided order (selland buy order may be used).

For example, Sellside participant 107 may submit a market making buyorder to the marketplace for a financial instrument (e.g., mortgagebacked bond) using an API of the marketplace and a FIX messaging format.The marketplace may receive the order and add the Sellside participantas a liquidity provider for the buying side of the financial instrument.The market making buy order may have a size associated therewith. Thesize may be required to meet some marketplace minimum order size that ishigher than for a regular order book order (e.g., 200 million ascompared to 1 million).

Similarly, second Sellside participant 109 may submit a second marketmaking buy order to the marketplace for the same financial instrumentusing the API and a FIX message. The marketplace may receive the secondorder and add the second Sellside participant as a liquidity providerfor the buying side of the financial instrument.

Accordingly, multiple Sellside participants may make a market on thesame side of a single financial instrument. Any number of Sellsideparticipants may act as market makers on a single order side of a singlefinancial instrument.

Prices for market maker orders may be managed by the marketplace. Theprice may be pegged to a best bid and/or best offer of pending in anorder book of the marketplace. For example, if a highest bid iscurrently 99.95, then a marketmaking order to buy (such as thosereceived in the example from the first and second Sellside participants)may be pegged at some level relative to 99.95. In some implementation,that level may be two ticks (i.e., minimum price adjustments) worse thanthe best market price. For example, if the minimum price adjustment inthe marketplace is 0.05, then in this example, the market making buyorders for each of the Sellside participants would be set at 99.85.

It should be recognized that the example of decimal pricing, two ticks,and tick size are all given as non-limiting examples only. Two ticks mayprovide a level of price protection that is deemed appropriate for amarket maker in this example market. For instruments that have more orless liquidity and/or volatility that level of protection may beincreased or decreased.

As a best bid or offer in an order book moves, marketmaker bids andoffers may be adjusted in response by the marketplace to maintain thepegged relationship. For example, if the best bid in the example changesbased on a new bid being received to 100.00, then the price for themarketmaker buy orders may be adjusted to 99.90 in response.

In some embodiments, a marketplace may deviate from a standard peggingof marketmaker orders to a best bid or offer in some circumstances. Forexample, a marketplace may operate in a decimal pricing model whileother marketplaces may operate at fractional pricing models (e.g., ¼s of32nds). When at a decimal pricing marketplace the adjustment of a priceto maintain a pegging would cross a fractional pricing model price, themarketplace may set the price at the fractional pricing instead. Thismay offer a level of price compression protection to the marketmakers.For example, if a best offer is set at 99.9760 in a marketplace withticks of 0.0005, typically a marketmaking offer may be set at 99.9770.However, with a compression protection applied, where there is afractional price boundary at 99.9765625, the price may instead by set atthe boundary of 99.9765625. This number may be rounded or truncated tothe 99.9765 level in some implementations.

In some embodiments compression may be configurable by the marketmakers.A marketmaker may submit a command to the marketplace to not applycompression to an instrument type, to all orders, to a particular order,etc. The marketplace may act accordingly in response. A marketmaker maysubmit a command to use standard increment level compression (e.g.,compress to the boundary) to an instrument type, to all orders, to aparticular order, etc. The marketplace may act accordingly in response.A marketmaker may submit a command to use better than increment levelcompression (e.g., compress to a better than the boundary level) to aninstrument type, to all orders, to a particular order, etc. Themarketplace may act accordingly in response. A marketmaker may submitinformation identifying a degree to which a better than increment levelcompression should be better than a boundary (e.g., by percentage, bybasis points, by price, etc.). A marketplace may act accordingly inresponse. A marketmaker may change such compression attributes asdesired. In some embodiments, a marketmaker may use no compression forone instrument, increment level compression on another instrument, andbetter than increment level compression on yet another instrument in anycombination desired.

In some embodiments, the Sellside marketmaker orders may be open to theentire market. In other implementations the marketmaker order may beopen only to Buyside participants. In still other embodiments, themarketmaker orders may be limited to those Buyside participants that areapproved for trading by the Sellside participant making the market.Making a market may involve risk of gaming and information leakage. So,those participants that engage in that behavior may desire anonymity andprotection of their information. By limiting those entities that cantrade with the marketmaking orders, the marketplace may provide theSellside marketmakers with a level of security that encouragesmarketmaking and discourages market gaming.

A Sellside participant may identify to the marketplace a list ofapprover buyside entities for a marketmaking order. The approved listmay vary per order and/or per Sellside participant. The marketplace mayreceive the list before, with the order, and/or after the order. Themarketplace may make the order available to only the approved Buysideentities. For example, the first Sellside participant may identify thatthe first Buyside participant only should be able to trade on the buyingmarket making order. The second Sellside participant may identify thatboth the first and the second Buyside participants should be able totrade on the second buying marketmaking order. The marketplace may actso that those intentions are carried out. For example, that marketplacemay do so by preventing the second marketmaking participant fromviewing, accessing, trading on the first buying marketmaking order fromthe first Sellside participant.

Sellside participants may adjust the Buyside participants that areapproved after an order is listed by adding or removing participants.Buyside participants may be assigned a random number id each day. The idmay be included in activity reports such as trades with the Sellsideparticipant for the day. That may allow Sellside participant to tracktheir activity without revealing their actual identity. If a Sellsideparticipant believes that a Buyside participant is engaging insuspicious behavior, the Sellside participant may notify the marketplacewith the random id number. In this way, the Sellside participant mayhave the Buyside participant removed from an approved list withoutreveling to the Sellside participant the identity of the Buysideparticipant.

In some embodiments, Buyside participants may identify to themarketplace a list of approved Sellside entities. The approved list mayvary per order and/or per Buyside participant. The marketplace mayreceive the list before, with the order, and/or after the order. Themarketplace may make orders available to Buyside participant for whichthere is bilateral approval (e.g., approval from both a Buysideparticipant and a Sellside participant)

The marketplace may store Buyside and Sellside approval information.Such information may be stored in a bilateral counterparty approvalmatrix. Each cell of a matrix may store bilateral approval status for apair of counterparties. For example, rows of a two dimensional matrixmay indicate Buyside participants and columns may indicate Sellsideparticipants. The cell data structure may contain indicators of whetherthe Sellside participant and the buy side participant pair at that cellhave approved one another for trading. Bilateral approvals for a Buysideparticipant may be determined by traversing a row of the matrix for theBuyside participant to find each cell that indicates bilateral approval.In response to obtaining an approval list from a Sellside participant anindicator may be set in each appropriate cell identifying that theSellside participant has approved a Buyside participant. In response toreceiving an approval list from a Buyside participant an indicator maybe set in each appropriate cell identifying that the Buyside participanthas approved a Sellside participant. If both such indicators are set ata cell, then a bilateral approval has occurred for a Buyside andSellside pair.

Such a matrix may be accessed to determine which orders are accessibleby each party. For example, such a matrix may be accessed to determinewhich orders to display to a participant. In some implementations, suchapproval may apply to all trading. In other implementations, suchapproval may apply to liquidity provision trading and not CLOB trading.

Matching orders may be distributed among the approved Sellsideparticipants according to a marketplace determination. In someembodiments, a marketmaking order may be given matching preference ifthe Sellside participant of that order also has an order book orderpending at the corresponding best bid or offer. For example, the firstSellside participant may be given matching preference over the secondSellside participant if the first Sellside participant has an orderpending to buy as the best bid price on the marketplace and the secondSellside participant does not.

In such an example, a first Sellside participant may have an order atthe best bid for 1 million units and a marketmaking order for 500million units two ticks below that order. The second sellsideparticipant may have an order one tick behind the best bid for 1 millionunits and a marketmaking order for 800 million unit two ticks behind thebest bid. If the first Buyside participant enters the marketplace with asell offer for 600 million units “fill or kill,” the order may be firstmatched against the best bid 1 million from the first Sellsideparticipant. This may leave 599 million of in size remaining in theoffer. The marketplace may match the order next against the marketmakingorders in order of marketplace preference. The first Sellsideparticipant may be given preference based on the having the best bidprice in the order book. So, 500 million of the offer may be matchedwith the first Sellside participant's marketmaking order next. Then, theremaining 99 million in the offer may be matched with the secondSellside participants 800 million marketmaking order.

In response, the second Sellside participant's order book order for 1million at one tick behind the first Sellside participants originalorder book order may become the new best bid. In response, the remaining701 million marketmaking order from the second Sellside participant mayhave its price adjusted back one tick to remain two ticks behind the newbest bid or may be refreshed back to 800 million by the second Sellsideparticipant. This may be performed automatically by the marketplace inresponse to the changing market condition.

In the above example, an order from the first Sellside participant atthe best bid for 1 million units is match and filled first. However, inother embodiments, this order may not be matched against first. Instead,matching may begin with the marketmaking order. For example, an orderfor 500 million may match all of the 500 million marketmaking order fromthe first Sellside participant and none of the best bid. This may havean insignificant effect on price because marketmaking orders may besubstantially larger than best bids or offers. This arrangement mayincrease speed of transactions and reduce power consumption by reducinginstructions necessary for processing and messaging used for reporting.If there is additional order size remaining after matching with themarketmaking order, embodiments may then match against a best bid or maymove on to other market making orders. Using other marketmaking ordersfirst may result in a faster more efficient energy operation.

In some embodiments, where there are multiple marketmaking Sellsideparticipants at the best bid or offer or none at the best bid or offer,size may be distributed in a variety of manners. For example, a pro ratemanner may be used, a preference for active participants may be used, atime ordered preference may be used, a price of order book orderpreference may be given, and so on.

Buyside participants may have a preference for trading with one or moreSellside participants. For example, preventing information leakage is ofgreat importance to Buyside participants. As another example obtainingresearch is also of great importance to Buyside participants. SomeSellside participants may have preferential relationships with Buysideparticipants because of information security and/or research provisionacts. The Buyside participants may identify a preference indicator tothe marketplace that may override traditional matching determinations.

For example, the first Buyside participant may identify a preference forthe second Sellside participant in the above example. Instead ofmatching with the first Sellside participant's marketmaking order, themarketplace may instead honor the preference and the second Sellsideparticipant may be matched instead. In that case, the example mayinstead leave the second Sellside participant's order book order as thenew best bid and leave the first Sellside participant's entire 500million marketmaking to two ticks behind the new best bid with thesecond participant's marketmaking orders remaining 201 million.

A Buyside participant may be presented with an interface through whichinformation about available marketmaking orders is displayed. Such aninterface may show a size of availability of marketmaking orders thatare available to a particular Buyside participant while maintaininganonymity of the participants that are making the markets. Such aninterface may show a price of orders (e.g., as an actual price and/ordifferential from a best bid or offer).

In order to populate such an interface with useful information, amarketplace may access an approved counterparty matrix to determinewhich counterparties have bilateral approval for a Buyside participantthat is being shown the interface. For each counterparty for which thematrix indicates bilateral approval, information about marketmakingorders from that participant may be determined and used to populate theinterface. Accordingly, the Buyside participant may be shown informationabout marketmaking orders for counterparties that have bilateralapproval but not other orders that the Buyside participant would not beenabled to trade against.

In some embodiments, a Buyside participant may be given an option ofrequesting from the marketplace that an interface be populated withinformation about marketmaking orders from a specific Sellsideparticipant. For example, a Buyside participant may desire to seemarketmaking orders from JP Morgan. The marketplace, may determine suchorders and present them to the Buyside participant (e.g., if the partiesare bilaterally approved). This feature may remove an element ofanonymity for the Sellside participant. However, this feature may enablethe Buyside participants to provide trades more easily to thoseparticipants with which they have favorable relationships. Otherembodiments may not have such a feature to protect anonymity.

In some embodiments, a marketplace may make a determination of whetherto use maketmaking orders or standard order book orders in filling anorder. Such a determination may be made in the best interests of anaggressor. For example, if there are pending orders outside of themarketmaking orders that would provide a better price to an aggressor,the standard orders may be matched against. This may be the case forexample if there is sufficient liquidity at the best bid to fill anaggressor order. If standard orders cannot fill the order then themarketmaking order system may be used instead.

In some embodiments, Sellside participants can provide passivemarketmaking orders but may not be able to view those order from otherparticipants. In some embodiments, Sellside participants can enter CLOBorder and passive marketmaking orders but not aggressive orders topassive marketmaking orders. In some embodiments, Buyside participantscan enter CLOB orders and orders that are aggressive to passivemarketmaking orders but not passive marketmaking orders.

Some embodiments may include performing a method. Such a method may beperformed by a platform to enable trading using marketmaking orders fromSellside participants. The method may be performed by a computing devicebased on execution of one or more instructions stored on anon-transitory medium. FIG. 2 illustrates an example method that may beused in some embodiments.

As indicated, some embodiments may include receiving respective list ofapproved Buyside participants for each of a plurality of marketmakingorders submitted by a respective Sellside participant in a market for afinancial instrument. As indicated, some embodiments may includereceiving a respective marketmaking order for a same side of a trade onthe financial instrument from each of the plurality of Sellsideparticipants. As indicated, some embodiments may include pegging a pricefor all the received marketmaking orders to a price relative to andmultiple ticks behind a best price on the side of the trade in an orderbook. As indicated, some embodiments may include presenting marketinformation to Buyside participants identifying marketmaking orders forwhich the Buyside participants are approved. As indicated, someembodiments may include receiving a contra order from a Buysideparticipant that is approved to trade with a subset of the plurality ofmarketmaking orders, in which the contra order identifies a preferredSellside participants. As indicated, some embodiments may includedistributing the contra order first to first orders at the best bid oroffer, then to marketmaking orders from the identified Sellsideparticipant that the Buyside participant is approved to trade against,then to marketmaking orders that the Buyside participant is approved totrade against and whose Sellside submitter has an order matched againstin the first orders, and then to marketmaking orders that the Buysideparticipant is approved to trade against and whose Sellside submitterdoes not have an order matched against in the first orders. Asindicated, some embodiments may include determining new best bid andoffer in response to the distribution. As indicated, some embodimentsmay include adjusting remaining marketmaking offers to retain peg inresponse to determining new best bid or offer. It should be recognizedthat this method is given as an example only. Other examples may includeother methods of different order and/or with different actions.

It should be recognized that while various examples and features aregiven throughout, that such examples are non-limiting. Implementationsmay include any desired combinations of elements in any order from anyof the various examples given herein. Other embodiments may includeadditional fewer, or different elements as desired.

For example, in some implementations, pricing may be performed at the1/16^(th) of a 1/32^(nd) increment. Such an embodiment may provide ahigh level of price granularity in a system that is familiar. As anotherexample, some embodiments may avoid compression protection acrossincrement barriers allowing traders to perform such analysis themselves.

As another example, rather than pegging liquidity provision orders to arazor's edge or best CLOB price, some embodiments may include separatebooks: a CLOB and a block book. A CLOB may operate for smaller ordersizes (e.g. no limit in size, 1 million minimum, etc.). A block book mayoperate for larger order sizes (e.g., 100 million, 500 million, 1billion, 2 billion, etc.). Sizes of orders for such books may differbased on a financial instrument (e.g., more liquid instruments may havelarger size minimums). An electronic marketplace may maintain separateCLOB and block books for each financial instrument. In some embodiments,liquidity providers may enter orders of any size that may meet anoptional minimum size amount in a CLOB. Though, generally smaller ordermay be placed there and in others embodiments there may be a sizemaximum in the CLOB (e.g., equal to or less than the minimum of theblock book). Larger orders that meet a much higher minimum size may beplaced in a block book. This block book embodiment may operate similarto the liquidity provision orders above with the exception hat the blockbook orders are not tied or pegged to CLOB orders. Price changes in aCLOB may not affect prices in a block book. Similarly, a liquidityprovider may not be required to have an order in a CLOB in order toparticipate in the block book in such an embodiment. In someembodiments, order filling may be performed through the book chosen by aliquidity taker (e.g., if a taker hits the CLOB then the CLOB ordersfill, if the taker hits a block book with a order of minimum size orabove, then the block book orders fill). Order filing my use a prioritymechanism such as the promo codes described above. Some embodiments maygive preference to larger liquidity providers, liquidity providers withCLOB order at a razors edge price, and so on. In some embodiments, orderfilling may be performed through a book determined by a marketplace(e.g., matching an order size minimum as described below).

Although an example of a block book with a single size minimum is given,it should be recognized that other embodiments may include any number ofdifferent size restrictions. For example, a block book may include amultiple leveled ladder of pricing and minimum sizes. Size requirements,and/or number of steps may be determined based on characteristics of afinancial instrument (e.g., liquidity). As an example, a two yeartreasury may have four separate entries in a block book: one entry forone hundred million minimum orders, one entry for five hundred millionminimum orders, one entry for one billion minimum orders and one entryfor two billon minimum orders. Liquidity providers may submit orders anda marketplace may enter them into an appropriate enter in a block bookthat matches the size of the order. The block book may track, match andfill orders in each size entry separately. A liquidity taker wanting tofill an order that meets a minimum size threshold may submit an order tothe matching entry of the block book. The submitted order may be filledthrough the appropriate block book entry with orders pending in thatentry according to a priority mechanism (e.g., promo codes).

In some embodiments, when an order from a liquidity taker arrives anelectronic marketplace may determine whether to process through the CLOBor the block book based on the order size. If the order meets the blockbook minimum, the order may be routed to the block book rather than theCLOB. The marketplace may determine which entry in the block book to useto fill the order. Similarly, such a determination may be based on thesize of the order. The marketplace may use the entry that has thelargest minimum size requirement that the order meets to fill the order.For example, a six hundred million order may be processed in the fivehundred million block book.

In some embodiments, if there is unmatched order left after filling theaggressor order through the determined block book entry, that liquiditymay be filled with other orders (e.g., in another entry, in the CLOB).For example, a next highest minimum block book entry may be used to fillan unfilled portion continually. If all entries with matching prices areused up, the CLOB may also be used to fill such leftover liquidity insome embodiment. In other embodiments, only a single entry of the blockbook may be used to fill liquidity of an order matching that entry.

Some embodiments may protect liquidity providers in a block book frommanipulation by liquidity takers. A liquidity provider that entersorders in a higher entry of a block book can expect a higher price. Sucha higher price represents a liquidity premium. Some embodiments mayprevent a liquidity taker form entering more than one order on a side ofa trader for a financial instrument during a time period. A length of atime period may be based on liquidity of an instrument. Such a timeperiod may range from, for example, milliseconds, to one second, to fiveminutes, to ten minutes. This order placement prevention may incentivethe liquidity taker to use an appropriate size order to take desiredliquidity. If the taker places a full size order then the desire of thetaker may be filled with one order at an appropriate price. If the takerattempts to split the order into smaller orders to take advantage oflower priced block book entries, the taker may be prevented from placingsuch repeated orders. An electronic market may track orders placed,receive new orders and compare them to the tracked orders. If the neworders are submitted on the same side of a previous block book order foran instrument during a prevention period by a same submitter, themarketplace may notify a submitter that the order is not placed. Afterthe time period, orders on that side may be placed again by the taker.

Embodiments may improve technical functionality, solve technicalproblems, provide technical solutions, and/or be rooted in computingtechnologies.

Traditional trading without the benefit of contemporary computingsolutions is unable to provide the speed and analysis of multiple datasources that various embodiment provide. Algorithms and matching enginesrun at an incredibly fast speed. A human in a traditional tradingenvironment could not manually process the vast amounts of data neededto interact with fast moving contemporary electronic markets such asthose described herein.

Pegging a marketmaking order to a best bid or offer price automaticallyby a platform may provide a technical solution to a technical problemrooted in electronic trading technologies. The high speed of marketactivity means that network latency and processing time can becomeserious issues. If a market moves, the time to report that movement,process that movement and respond to that movement may mean that aparticipant has lost significant amounts of money. That may be the caseeven if only fractions of a second pass.

Traditionally, to keep an order pegged at a price distance from anotherorder, a market would operate by relying on a submitter of the order tomonitor the market movement and adjust the order. But, because of thehigh speeds of market movement and the network and processing latency,when the market moves there may be a delay as the submitter adjusts theorder. By pegging the price locally at the platform, latency is removedand the submitter is protected from risk. Traditionally, the submitterwould be at risk of a race condition after the market moves. Forexample, the market would move and the submitter would submit anadjustment to the order to move the price accordingly. But anothertrader may race to beat the submitter's adjustment. The submitter wantsto change the price of the order, but another trader may enter a contraorder before the submitter's desire reaches a traditional marketplace.Some embodiments of the platform described herein that locally peg theprice to the market movement may protect the submitter by substantiallyeliminating this race condition.

Moreover, some embodiments may reduce bandwidth usage and/or processingoperations. For example, in the traditional market where a submitterself-adjusts an order, the submitter may be required to submit manyorder price adjustments. Each such price adjustment may use bandwidthand require processing be done at both the marketplace receiving theadjustment and the submitter making the adjustment. In some embodimentsof the platform described herein, bandwidth usage may be reduced becausesuch adjustment submissions may not be used and less processing may beperformed because adjustment orders may not be received or transmitted.This may create both a more energy efficient and bandwidth efficientmarketplace.

Various embodiments provide levels of anonymity and information securitythat might not typically be found in public markets. In open outcrymarkets used before electronic trading, trading intentions and identitybecame public knowledge. In typical electronic trading systems, ordersare published to a broad market and reports of trading activity aresimilarly reported to the broad market. In various embodiments herein,problems with such information distribution and identity leakage areaddressed and participants can feel confident in market participation.

Additionally, order access in traditional non-electronic and electronicmarkets is open to all. In a traditional market there is no ability toengage in trading according to a complicated web of bilateral approvalsand preferences. Various embodiments described herein create mappingsbetween market participants so that trading counterparty preferences canbe matched that would not be possible in a traditional marketplace.

The following sections provide a guide to interpreting the presentapplication.

I. Terms

The term “product” means a machine, manufacture and/or composition ofmatter, unless expressly specified otherwise.

The term “process” means a process, algorithm, method or the like,unless expressly specified otherwise.

Each process (whether called a method, algorithm or otherwise)inherently includes one or more steps, and therefore all references to a“step” or “steps” of a process have an inherent antecedent basis in themere description of a process, or in the mere recitation of the term‘process’ or a like term. Accordingly, any reference in a claim to a‘step’ or ‘steps’ of a process has sufficient antecedent basis.

The term “invention” and the like mean “the one or more inventionsdisclosed in this application”, unless expressly specified otherwise.

The terms “an embodiment”, “embodiment”, “embodiments”, “theembodiment”, “the embodiments”, “one or more embodiments”, “someembodiments”, “certain embodiments”, “one embodiment”, “anotherembodiment” and the like mean “one or more (but not all) embodiments ofthe invention”, unless expressly specified otherwise.

The term “variation” of an invention means an embodiment of theinvention, unless expressly specified otherwise.

The term “indication” is used in an extremely broad sense. An“indication” of a thing should be understood to include anything thatmay be used to determine the thing.

An indication of a thing may include an electronic message thatidentifies the thing (e.g., an identification of a widget by a serialnumber affixed to the widget, an identification of a widget by one ormore characteristics of the widget). An indication of a thing mayinclude information that may be used to compute and/or look-up a thing(e.g., information identifying a machine of which a widget is a partthat may be used to determine the widget). An indication of a thing mayspecify things that are related to the thing (e.g., characteristics ofthe thing, a name of the thing, a name of a thing related to the thing).An indication of a thing may not specify things that are related to thething (e.g., a letter “a” may be an indication of a widget of a computersystem that is configured to interpret the letter “a” to identify thewidget). An indication of a thing may include a sign, a symptom, and/ora token of the thing. An indication, for example, may include a code, areference, an example, a link, a signal, and/or an identifier. Anindication of a thing may include information that represents,describes, and/or otherwise is associated with the thing.

A transformation of an indication of a thing may be an indication of thething (e.g., an encrypted indication of a thing may be an indication ofthe thing). An indication of a thing may include the thing itself, acopy of the thing, and/or a portion of the thing. An indication of athing may be meaningless to a thing that is not configured to understandthe indication (e.g., a person may not understand that a letter “a”indicates a widget but it may nonetheless be an indication of the widgetbecause the computer system may determine the widget from the letter“a”). It should be understood that the fact that an indication of athing may be used to determine the thing does not mean that the thing oranything else is determined. An indication of a thing may include anindication of any number of the thing unless specified otherwise. Anindication of a thing may include an indication of other things (e.g.,an electronic message that indicates many things). (Indication can beused as a very broad term in claim language. For example: receiving anindication of a financial instrument.)

The term “represent” means (1) to serve to express, designate, standfor, or denote, as a word, symbol, or the like does; (2) to express ordesignate by some term, character, symbol, or the like; (3) to portrayor depict or present the likeness of, as a picture does; or (4) to serveas a sign or symbol of.

A reference to “another embodiment” in describing an embodiment does notimply that the referenced embodiment is mutually exclusive with anotherembodiment (e.g., an embodiment described before the referencedembodiment), unless expressly specified otherwise. Similarly, the merefact that two (or more) embodiments are referenced does not imply thatthose embodiments are mutually exclusive.

One embodiment of the invention may include or cover or embrace morethan one other embodiment of the invention. For example, a firstembodiment comprising elements a, b, and c may cover a second embodimentthat comprises elements a, b, c, and d as well as a third embodimentcovering elements a, b, c, and e. Similarly, each of the first, second,and third embodiments may cover a fourth embodiment comprising elementsa, b, c, d, and e.

The terms “including”, “comprising” and variations thereof mean“including but not necessarily limited to”, unless expressly specifiedotherwise. Thus, for example, the sentence “the machine includes a redwidget and a blue widget” means the machine includes the red widget andthe blue widget, but may possibly include one or more other items aswell.

The term “consisting of” and variations thereof mean “including and alsolimited to”, unless expressly specified otherwise. Thus, for example,the sentence “the machine consists of a red widget and a blue widget”means the machine includes the red widget and the blue widget, but doesnot include anything else.

The term “compose” and variations thereof mean “to make up theconstituent parts of, component of or member of”, unless expresslyspecified otherwise. Thus, for example, the sentence “the red widget andthe blue widget compose a machine” means the machine includes the redwidget and the blue widget.

The term “exclusively compose” and variations thereof mean “to make upexclusively the constituent parts of”, to be the only components of, orto be the only members of, unless expressly specified otherwise. Thus,for example, the sentence “the red widget and the blue widgetexclusively compose a machine” means the machine consists of the redwidget and the blue widget (i.e. and nothing else).

The terms “a”, “an” and “the” refer to “one or more”, unless expresslyspecified otherwise. Thus, for example, the phrase “a widget” means oneor more widgets, unless expressly specified otherwise. Similarly, afterreciting the phrase “a widget”, a subsequent recitation of the phrase“the widget” means “the one or more widgets”. Accordingly, it should beunderstood that the word “the” may also refer to a specific term havingantecedent basis. For example, if a paragraph mentions “a specificsingle feature” and then refers to “the feature,” then the phrase “thefeature” should be understood to refer to the previously mentioned “aspecific single feature.” (It should be understood that the term “a” in“a specific single feature” refers to “one” specific single feature andnot “one or more” specific single features.)

The term “plurality” means “two or more”, unless expressly specifiedotherwise.

The term “herein” means “in the present application, including anythingwhich may be incorporated by reference”, unless expressly specifiedotherwise.

The phrase “at least one of”, when such phrase modifies a plurality ofthings (such as an enumerated list of things), means any combination ofone or more of those things, unless expressly specified otherwise. Forexample, the phrase “at least one of a widget, a car and a wheel” meanseither (i) a widget, (ii) a car, (iii) a wheel, (iv) a widget and a car,(v) a widget and a wheel, (vi) a car and a wheel, or (vii) a widget, acar and a wheel. The phrase “at least one of”, when such phrase modifiesa plurality of things does not mean “one of each of” the plurality ofthings. For example, the phrase “at least one of a widget, a car and awheel” does not mean “one widget, one car and one wheel”.

Numerical terms such as “one”, “two”, etc. when used as cardinal numbersto indicate quantity of something (e.g., one widget, two widgets), meanthe quantity indicated by that numerical term, but do not mean at leastthe quantity indicated by that numerical term. For example, the phrase“one widget” does not mean “at least one widget”, and therefore thephrase “one widget” does not cover, e.g., two widgets.

The phrase “based on” does not mean “based only on”, unless expresslyspecified otherwise. In other words, the phrase “based on” covers both“based only on” and “based at least on”. The phrase “based at least on”is equivalent to the phrase “based at least in part on”. For example,the phrase “element A is calculated based on element B and element C”covers embodiments where element A is calculated as the product of Btimes C (in other words, A=B×C), embodiments where A is calculated asthe sum of B plus C (in other words, A=B+C), embodiments where A iscalculated as a product of B times C times D, embodiments where A iscalculated as a sum of the square root of B plus C plus D times E, andso on.

The term “represent” and like terms are not exclusive, unless expresslyspecified otherwise. For example, the term “represents” does not mean“represents only”, unless expressly specified otherwise. For example,the phrase “the data represents a credit card number” covers both “thedata represents only a credit card number” and “the data represents acredit card number and the data also represents something else”.

The term “whereby” is used herein only to precede a clause or other setof words that express only the intended result, objective or consequenceof something that is explicitly recited before the term “whereby”. Thus,when the term “whereby” is used in a claim, the clause or other wordsthat the term “whereby” modifies do not establish specific furtherlimitations of the claim or otherwise restrict the meaning or scope ofthe claim.

The terms “e.g.”, “such as” and like terms mean “for example”, and thusdo not limit the term or phrase they explain. For example, in thesentence “the computer sends data (e.g., instructions, a data structure)over the Internet”, the term “e.g.” explains that “instructions” are anexample of “data” that the computer may send over the Internet, and alsoexplains that “a data structure” is an example of “data” that thecomputer may send over the Internet. However, both “instructions” and “adata structure” are merely examples of “data”, and other things besides“instructions” and “a data structure” can be “data”.

The term “respective” and like terms mean “taken individually”. Thus iftwo or more things have “respective” characteristics, then each suchthing has its own characteristic, and these characteristics can bedifferent from each other but need not be. For example, the phrase “eachof two machines has a respective function” means that the first of thetwo machines has a function and the second of the two machines has afunction as well. The function of the first machine may or may not bethe same as the function of the second machine.

The term “i.e.” and like terms mean “that is”, and thus limits the termor phrase it explains. For example, in the sentence “the computer sendsdata (i.e., instructions) over the Internet”, the term “i.e.” explainsthat “instructions” are the “data” that the computer sends over theInternet.

A numerical range includes integers and non-integers in the range,unless expressly specified otherwise. For example, the range “1 to 10”includes the integers from 1 to 10 (e.g., 1, 2, 3, 4, . . . 9, 10) andnon-integers (e.g., 1.0031415926, 1.1, 1.2, . . . 1.9).

Where two or more terms or phrases are synonymous (e.g., because of anexplicit statement that the terms or phrases are synonymous), instancesof one such term or phrase does not mean instances of another such termor phrase must have a different meaning. For example, where a statementrenders the meaning of “including” to be synonymous with “including butnot limited to”, the mere usage of the phrase “including but not limitedto” does not mean that the term “including” means something other than“including but not limited to”.

II. Determining

The term “determining” and grammatical variants thereof (e.g., todetermine a price, determining a value, the determination of an objectwhich meets a certain criterion) is used in an extremely broad sense.The term “determining” encompasses a wide variety of actions andtherefore “determining” can include calculating, computing, processing,deriving, investigating, looking up (e.g., looking up in a table, adatabase or another data structure), rendering into electronic format ordigital representation, ascertaining and the like. Also, “determining”can include receiving (e.g., receiving information), accessing (e.g.,accessing data in a memory) and the like. Also, “determining” caninclude resolving, selecting, choosing, establishing, and the like.

The term “determining” does not imply certainty or absolute precision,and therefore “determining” can include estimating, extrapolating,predicting, guessing, averaging and the like.

The term “determining” does not imply that mathematical processing mustbe performed, and does not imply that numerical methods must be used,and does not imply that an algorithm is used.

The term “determining” does not imply that any particular device must beused. For example, a computer need not necessarily perform thedetermining.

The term “determining” may include “calculating”. The term “calculating”should be understood to include performing one or more calculations.Calculating may include computing, processing, and/or deriving.Calculating may be performed by a computing device. For example,calculating a thing may include applying an algorithm to data by acomputer processor and generating the thing as an output of theprocessor.

The term “determining” may include “referencing”. The term “referencing”should be understood to include making one or more reference, e.g., to athing. Referencing may include querying, accessing, selecting, choosing,reading, and/or looking-up. The act of referencing may be performed by acomputing device. For example, referencing a thing may include reading amemory location in which the thing is stored by a processor.

The term “determining” may include “receiving”. For example, receiving athing may include taking in the thing. In some embodiments, receivingmay include acts performed to take in a thing, such as operating anetwork interface through which the thing is taken in. In someembodiments, receiving may be performed without acts performed to takein the thing, such as in a direct memory write or a hard wired circuit.Receiving a thing may include receiving a thing from a remote sourcethat may have calculated the thing.

III. Forms of Sentences

Where a limitation of a first claim would cover one of a feature as wellas more than one of a feature (e.g., a limitation such as “at least onewidget” covers one widget as well as more than one widget), and where ina second claim that depends on the first claim, the second claim uses adefinite article “the” to refer to that limitation (e.g., “the widget”),this mere usage does not imply that the first claim covers only one ofthe feature, and this does not imply that the second claim covers onlyone of the feature (e.g., “the widget” can cover both one widget andmore than one widget).

When an ordinal number (such as “first”, “second”, “third” and so on) isused as an adjective before a term, that ordinal number is used (unlessexpressly specified otherwise) merely to indicate a particular feature,such as to distinguish that particular feature from another feature thatis described by the same term or by a similar term, but that ordinalnumber does not have any other meaning or limiting effect—it is merely aconvenient name. For example, a “first widget” may be so named merely todistinguish it from, e.g., a “second widget”. Thus, the mere usage ofthe ordinal numbers “first” and “second” before the term “widget” doesnot indicate any other relationship between the two widgets, andlikewise does not indicate any other characteristics of either or bothwidgets.

For example, the mere usage of the ordinal numbers “first” and “second”before the term “widget” (1) does not indicate that either widget comesbefore or after any other in order or location; (2) does not indicatethat either widget occurs or acts before or after any other in time; and(3) does not indicate that either widget ranks above or below any other,as in importance or quality. The mere usage of ordinal numbers does notdefine a numerical limit to the features identified with the ordinalnumbers. For example, the mere usage of the ordinal numbers “first” and“second” before the term “widget” does not indicate that there areexactly two widgets.

When a single device, article or other product is described herein, inanother embodiment more than one device or article (whether or not theycooperate) may alternatively be used in place of the single device orarticle that is described. Accordingly, the functionality that isdescribed as being possessed by a device may alternatively be possessedby more than one device or article (whether or not they cooperate) inanother embodiment.

Similarly, where more than one device, article or other product isdescribed herein (whether or not they cooperate), in another embodimenta single device or article may alternatively be used in place of themore than one device or article that is described. For example, aplurality of computer-based devices may be substituted with a singlecomputer-based device. In some embodiments, such a plurality ofcomputer-based devices may operate together to perform one step of aprocess such as is common in grid computing systems. In someembodiments, such a plurality of computer-based devices may operateprovide added functionality to one another so that the plurality mayoperate to perform one step of a process such as is common in cloudcomputing systems. (Conversely, a single computer-based device may besubstituted with multiple computer-based devices operating incooperation with one another. For example, a single computing device maybe substituted with a server and a workstation in communication with oneanother over the internet) Accordingly, the various functionality thatis described as being possessed by more than one device or article mayalternatively be possessed by a single device or article.

The functionality and/or the features of a single device that isdescribed may, in another embodiment, be alternatively embodied by oneor more other devices which are described but are not explicitlydescribed as having such functionality or features. Thus, otherembodiments need not include the described device itself, but rather caninclude the one or more other devices which would, in those otherembodiments, have such functionality or features.

IV. Disclosed Examples and Terminology are not Limiting

Neither the Title (set forth at the beginning of the first page of thepresent application) nor the Abstract (set forth at the end of thepresent application) is to be taken as limiting in any way the scope ofthe disclosed invention, is to be used in interpreting the meaning ofany claim or is to be used in limiting the scope of any claim. AnAbstract has been included in this application merely because anAbstract is required under 37 C.F.R. § 1.72(b).

The headings of sections provided in the present application are forconvenience only, and are not to be taken as limiting the disclosure inany way.

Numerous embodiments are described in the present application, and arepresented for illustrative purposes only. The described embodiments arenot, and are not intended to be, limiting in any sense. The disclosedinvention is widely applicable to numerous embodiments, as is readilyapparent from the disclosure. One of ordinary skill in the art willrecognize that the disclosed invention may be practiced with variousmodifications and alterations, such as structural, logical, software,and electrical modifications. Although particular features of thedisclosed invention may be described with reference to one or moreparticular embodiments and/or drawings, it should be understood thatsuch features are not limited to usage in the one or more particularembodiments or drawings with reference to which they are described,unless expressly specified otherwise.

Though an embodiment may be disclosed as including several features,other embodiments of the invention may include fewer than all suchfeatures. Thus, for example, a claim may be directed to less than theentire set of features in a disclosed embodiment, and such claim wouldnot be interpreted as requiring features beyond those features that theclaim expressly recites.

No embodiment of method steps or product elements described in thepresent application constitutes the invention claimed herein, or isessential to the invention claimed herein, or is coextensive with theinvention claimed herein, except where it is either expressly stated tobe so in this specification or (with respect to a claim and theinvention defined by that claim) expressly recited in that claim.

Any preambles of the claims that recite anything other than a statutoryclass shall be interpreted to recite purposes, benefits and possibleuses of the claimed invention, and such preambles shall not be construedto limit the claimed invention.

The present disclosure is not a literal description of all embodimentsof the invention. Also, the present disclosure is not a listing offeatures of the invention which must be present in all embodiments.

All disclosed embodiments are not necessarily covered by the claims(even including all pending, amended, issued and canceled claims). Inaddition, a disclosed embodiment may be (but need not necessarily be)covered by several claims. Accordingly, where a claim (regardless ofwhether pending, amended, issued or canceled) is directed to aparticular embodiment, such is not evidence that the scope of otherclaims do not also cover that embodiment.

Devices that are described as in communication with each other need notbe in continuous communication with each other, unless expresslyspecified otherwise. On the contrary, such devices need only transmit toeach other as necessary or desirable, and may actually refrain fromexchanging data most of the time. For example, a machine incommunication with another machine via the Internet may not transmitdata to the other machine for long period of time (e.g. weeks at atime). In addition, devices that are in communication with each othermay communicate directly or indirectly through one or moreintermediaries. Devices are in communication with one another if theyare capable of at least one-way communication with one another. Forexample, a first device is in communication with a second device if thefirst device is capable of transmitting information to the seconddevice. Similarly, the second device is in communication with the firstdevice if the second device is capable of receiving information from thefirst device.

A description of an embodiment with several components or features doesnot imply that all or even any of such components or features arerequired. On the contrary, a variety of optional components aredescribed to illustrate the wide variety of possible embodiments of thepresent invention. Unless otherwise specified explicitly, no componentor feature is essential or required.

Although process steps, algorithms or the like may be described orclaimed in a particular sequential order, such processes may beconfigured to work in different orders. In other words, any sequence ororder of steps that may be explicitly described or claimed does notnecessarily indicate a requirement that the steps be performed in thatorder. The steps of processes described herein may be performed in anyorder possible. Further, some steps may be performed simultaneouslydespite being described or implied as occurring non-simultaneously(e.g., because one step is described after the other step). Moreover,the illustration of a process by its depiction in a drawing does notimply that the illustrated process is exclusive of other variations andmodifications thereto, does not imply that the illustrated process orany of its steps are necessary to the invention, and does not imply thatthe illustrated process is preferred.

Although a process may be described as including a plurality of steps,that does not imply that all or any of the steps are preferred,essential or required. Various other embodiments within the scope of thedescribed invention include other processes that omit some or all of thedescribed steps. Unless otherwise specified explicitly, no step isessential or required.

Although a process may be described singly or without reference to otherproducts or methods, in an embodiment the process may interact withother products or methods. For example, such interaction may includelinking one business model to another business model. Such interactionmay be provided to enhance the flexibility or desirability of theprocess.

Although a product may be described as including a plurality ofcomponents, aspects, qualities, characteristics and/or features, thatdoes not indicate that any or all of the plurality are preferred,essential or required. Various other embodiments within the scope of thedescribed invention include other products that omit some or all of thedescribed plurality.

An enumerated list of items (which may or may not be numbered) does notimply that any or all of the items are mutually exclusive, unlessexpressly specified otherwise. Likewise, an enumerated list of items(which may or may not be numbered) does not imply that any or all of theitems are comprehensive of any category, unless expressly specifiedotherwise. For example, the enumerated list “a computer, a laptop, and aPDA” does not imply that any or all of the three items of that list aremutually exclusive and does not imply that any or all of the three itemsof that list are comprehensive of any category.

An enumerated list of items (which may or may not be numbered) does notimply that any or all of the items are equivalent to each other orreadily substituted for each other.

All embodiments are illustrative, and do not imply that the invention orany embodiments were made or performed, as the case may be.

V. Computing

It will be readily apparent to one of ordinary skill in the art that thevarious processes described herein may be implemented by, e.g.,appropriately programmed general purpose computers, special purposecomputers and computing devices. Typically a processor (e.g., one ormore microprocessors, one or more microcontrollers, one or more digitalsignal processors) will receive instructions (e.g., from a memory orlike device), and execute those instructions, thereby performing one ormore processes defined by those instructions. Instructions may beembodied in, e.g., one or more computer programs, one or more scripts.

The term “compute” shall mean to determine using a processor inaccordance with a software algorithm.

A “processor” means one or more microprocessors, central processingunits (CPUs), computing devices, microcontrollers, digital signalprocessors, graphics processing units (GPUs) or like devices or anycombination thereof, regardless of the architecture (e.g., chip-levelmultiprocessing or multi-core, RISC, CISC, Microprocessor withoutInterlocked Pipeline Stages, pipelining configuration, simultaneousmultithreading, microprocessor with integrated graphics processing unit,GPGPU).

A “computing device” means one or more microprocessors, centralprocessing units (CPUs), computing devices, microcontrollers, digitalsignal processors, graphics card, mobile gaming device, or like devicesor any combination thereof, regardless of the architecture (e.g.,chip-level multiprocessing or multi-core, RISC, CISC, Microprocessorwithout Interlocked Pipeline Stages, pipelining configuration,simultaneous multithreading).

Thus a description of a process is likewise a description of anapparatus for performing the process. The apparatus that performs theprocess can include, e.g., a processor and those input devices andoutput devices that are appropriate to perform the process. For example,a description of a process is a description of an apparatus comprising aprocessor and memory that stores a program comprising instructions that,when executed by the processor, direct the processor to perform themethod.

The apparatus that performs the process can include a plurality ofcomputing devices that work together to perform the process. Some of thecomputing devices may work together to perform each step of a process,may work on separate steps of a process, may provide underlying servicesthat other computing devices that may facilitate the performance of theprocess. Such computing devices may act under instruction of acentralized authority. In another embodiment, such computing devices mayact without instruction of a centralized authority. Some examples ofapparatus that may operate in some or all of these ways may include gridcomputer systems, cloud computer systems, peer-to-peer computer systems,computer systems configured to provide software as a service, and so on.For example, the apparatus may comprise a computer system that executesthe bulk of its processing load on a remote server but outputs displayinformation to and receives user input information from a local usercomputer, such as a computer system that executes VMware software.

Further, programs that implement such methods (as well as other types ofdata) may be stored and transmitted using a variety of media (e.g.,computer readable media) in a number of manners. In some embodiments,hard-wired circuitry or custom hardware may be used in place of, or incombination with, some or all of the software instructions that canimplement the processes of various embodiments. Thus, variouscombinations of hardware and software may be used instead of softwareonly.

The term “computer-readable medium” refers to any non-transitory medium,a plurality of the same, or a combination of different media, thatparticipate in providing data (e.g., instructions, data structures)which may be read by a computer, a processor or a like device. Such amedium may take many forms, including but not limited to, non-volatilemedia, volatile media, and transmission media. Non-volatile mediainclude, for example, optical or magnetic disks and other persistentmemory. Volatile media include dynamic random access memory (DRAM),which typically constitutes the main memory. Transmission media includecoaxial cables, copper wire and fiber optics, including the wires thatcomprise a system bus coupled to the processor. Transmission media mayinclude or convey acoustic waves, light waves and electromagneticemissions, such as those generated during radio frequency (RF) andinfrared (IR) data communications. Common forms of computer-readablemedia include, for example, a floppy disk, a flexible disk, hard disk,magnetic tape, any other magnetic medium, a CD-ROM, DVD, any otheroptical medium, punch cards, paper tape, any other physical medium withpatterns of holes, a RAM, a PROM, an EPROM, a FLASH-EEPROM, any othermemory chip or cartridge, a carrier wave as described hereinafter, orany other medium from which a computer can read.

The term “tangible computer-readable medium” refers to a“computer-readable medium” that comprises a hardware component, such asoptical or magnetic disks.

Various forms of computer readable media may be involved in carryingdata (e.g. sequences of instructions) to a processor. For example, datamay be (i) delivered from RAM to a processor; (ii) carried over awireless transmission medium; (iii) formatted and/or transmittedaccording to numerous formats, standards or protocols, such as Ethernet(or IEEE 802.3), wireless local area network communication defined bythe IEEE 802.11 specifications whether or not they are approved by theWiFi Alliance, SAP, ATP, Bluetooth™, and TCP/IP, TDMA, CDMA, and 3G;and/or (iv) encrypted to ensure privacy or prevent fraud in any of avariety of ways well known in the art.

The term “database” refers to any electronically-stored collection ofdata that is stored in a retrievable format.

The term “data structure” refers to a database in a hardware machinesuch as a computer.

The term “network” means a series of points or nodes interconnected bycommunication paths. For example, a network can include a plurality ofcomputers or communication devices interconnected by one or more wiredand/or wireless communication paths. Networks can interconnect withother networks and contain subnetworks.

The term “predetermined” means determined beforehand, e.g., before apresent time or a present action. For example, the phrase “displaying apredetermined value” means displaying a value that was determined beforethe act of displaying.

The term “condition” means (1) a premise upon which the fulfillment ofan agreement depends, or (2) something essential to the appearance oroccurrence of something else.

The term “transaction” means (1) an exchange or transfer of goods,services, or funds, or (2) a communicative action or activity involvingtwo parties or things that reciprocally affect or influence each other.

Thus a description of a process is likewise a description of acomputer-readable medium storing a program for performing the process.The computer-readable medium can store (in any appropriate format) thoseprogram elements which are appropriate to perform the method. Forexample, a description of a process is a description of acomputer-readable storage medium that stores a program comprisinginstructions that, when executed by a processor, direct the processor toperform the method.

Just as the description of various steps in a process does not indicatethat all the described steps are required, embodiments of an apparatusinclude a computer or computing device operable to perform some (but notnecessarily all) of the described process.

Likewise, just as the description of various steps in a process does notindicate that all the described steps are required, embodiments of acomputer-readable medium storing a program or data structure include acomputer-readable medium storing a program that, when executed, cancause a processor to perform some (but not necessarily all) of thedescribed process.

Where databases are described, it will be understood by one of ordinaryskill in the art that (i) alternative database structures to thosedescribed may be readily employed, and (ii) other memory structuresbesides databases may be readily employed. Any illustrations ordescriptions of any sample databases presented herein are illustrativearrangements for stored representations of information. Any number ofother arrangements may be employed besides those suggested by, e.g.,tables illustrated in drawings or elsewhere. Similarly, any illustratedentries of the databases represent exemplary information only; one ofordinary skill in the art will understand that the number and content ofthe entries can be different from those described herein. Further,despite any depiction of the databases as tables, other formats(including relational databases, object-based models and/or distributeddatabases) could be used to store and manipulate the data typesdescribed herein. Likewise, object methods or behaviors of a databasecan be used to implement various processes, such as the describedherein. In addition, the databases may, in a known manner, be storedlocally or remotely from a device which accesses data in such adatabase.

Various embodiments can be configured to work in a network environmentincluding a computer that is in communication (e.g., via acommunications network) with one or more devices. The computer maycommunicate with the devices directly or indirectly, via any wired orwireless medium (e.g. the Internet, LAN, WAN or Ethernet, Token Ring, atelephone line, a cable line, a radio channel, an optical communicationsline, commercial on-line service providers, bulletin board systems, asatellite communications link, a combination of any of the above). Eachof the devices may themselves comprise computers or other computingdevices, such as those based on the Intel®, Pentium®, or Centrino™,Atom™ or Core™ processor, that are adapted to communicate with thecomputer. Any number and type of devices may be in communication withthe computer.

In an embodiment, a server computer or centralized authority may not benecessary or desirable. For example, the present invention may, in anembodiment, be practiced on one or more devices without a centralauthority. In such an embodiment, any functions described herein asperformed by the server computer or data described as stored on theserver computer may instead be performed by or stored on one or moresuch devices.

Where a process is described, in an embodiment the process may operatewithout any user intervention. In another embodiment, the processincludes some human intervention (e.g., a step is performed by or withthe assistance of a human).

As used herein, the term “encryption” refers to a process for obscuringor hiding information so that the information is not readilyunderstandable without special knowledge. The process of encryption maytransform raw information, called plaintext, into encrypted information.The encrypted information may be called ciphertext, and the algorithmfor transforming the plaintext into ciphertext may be referred to as acipher. A cipher may also be used for performing the reverse operationof converting the ciphertext back into plaintext. Examples of ciphersinclude substitution ciphers, transposition ciphers, and ciphersimplemented using rotor machines.

In various encryption methods, ciphers may require a supplementary pieceof information called a key. A key may consist, for example, of a stringof bits. A key may be used in conjunction with a cipher to encryptplaintext. A key may also be used in conjunction with a cipher todecrypt ciphertext. In a category of ciphers called symmetric keyalgorithms (e.g., private-key cryptography), the same key is used forboth encryption and decryption. The sanctity of the encryptedinformation may thus depend on the key being kept secret. Examples ofsymmetric key algorithms are DES and AES. In a category of cipherscalled asymmetric key algorithms (e.g., public-key cryptography),different keys are used for encryption and decryption. With anasymmetric key algorithm, any member of the public may use a first key(e.g., a public key) to encrypt plaintext into ciphertext. However, onlythe holder of a second key (e.g., the private key) will be able todecrypt the ciphertext back in to plaintext. An example of an asymmetrickey algorithm is the RSA algorithm.

VI. Continuing Applications

The present disclosure provides, to one of ordinary skill in the art, anenabling description of several embodiments and/or inventions. Some ofthese embodiments and/or inventions may not be claimed in the presentapplication, but may nevertheless be claimed in one or more continuingapplications that claim the benefit of priority of the presentapplication.

Applicants intend to file additional applications to pursue patents forsubject matter that has been disclosed and enabled but not claimed inthe present application.

VII. Disclaimer

Numerous references to a particular embodiment do not indicate adisclaimer or disavowal of additional, different embodiments, andsimilarly references to the description of embodiments which all includea particular feature do not indicate a disclaimer or disavowal ofembodiments which do not include that particular feature. A cleardisclaimer or disavowal in the present application will be prefaced bythe phrase “does not include” or by the phrase “cannot perform”.

VIII. Prosecution History

In interpreting the present application (which includes the claims), oneof ordinary skill in the art refers to the prosecution history of thepresent application, but not to the prosecution history of any otherpatent or patent application, regardless of whether there are otherpatent applications that are considered related to the presentapplication, and regardless of whether there are other patentapplications that share a claim of priority with the presentapplication.

What is claimed is:
 1. An electronic exchange platform comprising: atleast one processor configured to control: receiving, over acommunication network, a plurality of marketmaking orders for a side oftrades for a financial instrument from each of a plurality of sellsideparticipants in a market for the financial instrument; in response toreceiving the plurality of marketmaking orders, pegging a first pricefor each of the plurality of marketmaking orders to a price relative toand behind a best price on the side of trades in an order book for themarket, such that the first price for each of the plurality ofmarketmaking orders is in a pegged relationship with the best price; inresponse to receiving the plurality of marketmaking orders, populating,over the communication network, a respective interface of at least onebuyside participant, of a plurality of buyside participants in themarket for the financial instrument, with market information thatincludes information about a respective subset of the plurality ofmarketmaking orders for which the at least one buyside participant isdetermined to be an approved buyside participant from approval data in amemory indicating, for each of the plurality of marketmaking orders,respective approved buyside participants out of the plurality of buysideparticipants; receiving, over the communication network from a firstbuyside participant, a contra order to the plurality of marketmakingorders, in which the first buyside participant is approved to trade witha subset of the sellside participants and in which the contra orderidentifies a preferred sellside participant; in response to receivingthe contra order, distributing the contra order first to orders in theorder book according to a priority scheme to distribute liquidity, inwhich the priority scheme prioritizes distributing liquidity to ordersat a best bid or offer counter to the contra order over distributingliquidity to marketmaking orders that the first buyside participant isapproved to trade against and whose sellside submitter does not have anorder at the best bid or offer counter to the contra order;automatically in response to the distributing of the contra order,determining new best bid and offer prices in the order book; andautomatically in response to determining the new best bid and offerprices in the order book, without processing any order price adjustmentinformation over the communication network from any of the sellsideparticipants having respective remaining marketmaking orders of theplurality of marketmaking orders, removing latency by, at the electronicexchange platform, locally pegging an adjusted price to a new best priceon the side of trades determined from the new best bid or offer prices,by adjusting the remaining marketmaking orders of the plurality ofmarketmaking orders to the adjusted price to retain the peggedrelationship between the adjusted price of each of the remainingmarketmaking orders and the new best price on the side of tradesdetermined from the new best bid or offer prices, and populating, overthe communication network, a respective interface of at least one givenbuyside participant of the plurality of buyside participants with theadjusted price for each of the remaining marketmaking orders for whichthe at least one given buy side participant is determined to be anapproved buyside participant.
 2. The electronic exchange platform ofclaim 1, in which the financial instrument includes a bond.
 3. Theelectronic exchange platform of claim 1, in which the electronicexchange platform includes a computing device including the at least oneprocessor, a network link, and a non-transitory memory on whichinstructions are stored that when executed by the at least one processorcause the computing device to perform actions.
 4. The electronicexchange platform of claim 1, in which the at least one processor isconfigured to control: adjusting the remaining marketmaking orders tothe adjusted price to retain the pegged relationship with a given newbest price on the side of trades, automatically in response to marketmovement without input from the sellside participants.
 5. The electronicexchange platform of claim 1, in which the at least one processor isconfigured to control: receiving, over the communication network, anadjustment to the approved buyside participants, and adjusting, over thecommunication network, a respective interface of each buysideparticipant of the approved buyside participants to reflect theadjustment.
 6. The electronic exchange platform of claim 1, in which theat least one processor is configured to control: populating, over thecommunication network, a sellside interface of a given sellsideparticipant with market information for the financial instrument andcontrols for the given sellside participant to enter and submit one ofthe plurality of marketmaking orders.
 7. The electronic exchangeplatform of claim 1, in which the at least one processor is configuredto control: adjusting, over the communication network, an interface of agiven sellside participant in response to the adjusting the remainingmarketmaking orders to the adjusted price.
 8. The electronic exchangeplatform of claim 1, in which at least one of the respective interfaceincludes an entry form for the preferred sellside participant, and anindication of order sizes available from approved sellside participantsat the first price.
 9. The electronic exchange platform of claim 1, inwhich the marketmaking orders include orders to buy the financialinstrument and the contra order includes an order to sell the financialinstrument.
 10. The electronic exchange platform of claim 1, in whichthe first price for each of the plurality of marketmaking orders ispegged multiple ticks behind the best price.
 11. The electronic exchangeplatform of claim 1, in which the market information includes best bidand offer, size available at the best bid and offer, and liquidityorders available to the buyside participants.
 12. The electronicexchange platform of claim 1, in which the priority scheme prioritizesdistributing liquidity to marketmaking orders from the preferredsellside participant over distributing liquidity to a subset ofmarketmaking orders of the plurality of marketmaking orders that thefirst buyside participant is approved to trade against and whosesellside submitter has an order at the best bid or offer counter to thecontra order.